Liechtenstein Banks' Profits Rose Significantly in 2016

Written by: Bridgewest

Posted: 2017-06-08

Liechtenstein has one of the most performant banking systems in Europe, considering the number of banks per the total population of the country. There are 14 banks operating in Liechtenstein at the moment and all of them have reported goods incomes between January and December 2016.Foreign investors interested in starting a business in the financial sector can rely on our company registration advisors in Liechtenstein.

Liechtenstein banks have reported a 20% increase in profits in 2016

According to the Office of Statistics (AS) in Liechtenstein, the Principality has 14 financial institutions covering the banking needs of the population and all of them have reported increasing profits for the period of last year. The net profit reported by Liechtenstein banks last year amounts to 286.9 million CHF which represents close to 20% more than the profits registered last year. The increase reported is 19.8% to be more specific.

The income had a positive effect on the net income derived from interests, Also, the number of financial transactions has also increased in Liechtenstein last year. Another segment performing well was the asset management field of the banking sector in the Principality. The profits from what banks call “ordinary activities” grew by 43.3% reaching 320.3 million CHF.

The income generated by financial transaction contributed to this growth

According to the Statistics Office, the income generated by the increasing number of financial transactions led to the substantial growth of the banking sector, as on a year-to-year basis, they rose by 51.4% reaching 213 CHF. The large number of mortgages has also contributed to the rise in the profits of Liechtenstein banks as the population started to purchase properties. This was the largest increase in mortgage contracts since 2002, according to the AS. Apart from these, local banks had to administer assets worth 125.9 billion CHF, 3.9% higher than in the previous year.

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